“Right now that seems to be what we will need,” Ms Daly told reporters after a speech at Chapman University. She added that she now expects to have to raise rates to 3.1%, her view of “neutral”, by the end of the year, as data suggests inflation has not reached its peak and that households still have a lot of savings to spend.
“If we have more tightening or a broader slowdown in the economy than I currently expect, then anything between 50 and 75 seems like a reasonable thing to consider,” she said.